I think I figured it out (with hubby's help) and I think the machine is trashed. But let me know.
I think the horizontal bevel gear is gone. We found a picture of it in a 626 service manual, that's how I learned the name of the part. I notice that when I turn the handwheel the bobbin area does not spin. However when I turn the gears right under the bobbin, it spins. We realized that the connection point between the handwheel and the bobbin area is missing, the horizontal bevel gear. I think maybe it was plastic and it's gone.
I've attached a close up of the probably missing horizontal bevel gear.
Did we get it right?